Banking stocks drive benchmark index… ASI up 28bps

Today, buying interest in banking stocks – ZENITH (+2.3%), GUARANTY (+1.5%) and UBA (+1.9%) buoyed the performance of the local bourse as the benchmark index rose 28bps to 34,933.68 points. As a result, market capitalization increased by N36.1bn to N12.8tn while YTD loss improved to -8.7%. Activity level also improved as volume and value traded advanced 82.8% and 15.2% to 240.5m units and N3.6tn respectively. UBA (54.4m), ACCESS (38.5m) and STANBIC (35.2m) were the top traded stocks by volume while STANBIC (N1.7bn), GUARANTY (N0.6bn) and UBA (N0.4bn) led by value.

Performance across sectors was mixed as 2 of 5 indices closed northwards, 2 southwards and 1 flat. The Banking index rose, up 1.4% as investors took position in ZENITH (+2.3%), GUARANTY (+1.5%) and UBA (+1.9%). The Oil & Gas index trailed, inching 0.3% higher following gains in JAPAULOIL (+8.3%). On the flip side, the Consumer Goods and Insurance indices declined 0.7% and 0.3% respectively due to sell-offs in NIGERIAN BREWERIES (-2.1%), PZ (-10.0%), NEM (-4.1%) and LINKASSURE (-5.6%). The Industrial Goods index closed the day flat.

Investor sentiment as measured by market breadth (advance/decline ratio) improved to 1.3x from 0.9x recorded the previous day as 23 stocks advanced against 18 that declined. The top performers were  AIICO (+10.0%), JAIZ (+8.9%) and CILEASING (+8.8%) while UNIVINSURE (-10.0%), FIDSON (-10.0%) and PZ (-10.0%) led laggards. Due to market sentiments today, we expect bargain hunting to be sustained in tomorrow’s trading session. Nonetheless, we maintain a bearish outlook for the market in the near term.

Market Statistics Tuesday, 4th September 2018

Market Cap (N’bn)                            12,754.4

Market Cap (US$’bn)                              41.7

NSE All-Share Index                       34,933.68

Daily Performance %                                0.3

Week Performance %                             (1.6)

YTD Performance %                               (8.7)

Daily Volume (Million)                           240.5

Daily Value (N’bn)                                     3.6

Daily Value (US$’m)                                11.8